Product Liability Insurance
Protect What You Make or Sell with Product Liability Insurance
Western Financial Group is an award-winning brokerage. Our business insurance experts will get you the right insurance. Product liability insurance helps cover your legal costs should you be found responsible for a product causing bodily injury or property damage to a third party.
Our insurance expertise will benefit your business
We are skilled insurance shoppers. We work with Canada’s leading insurance partners to get you product liability insurance at the right value to protect your business.
Why you need product liability insurance
Product liability insurance is recommended for anyone who sells, manufactures, or distributes a product, including food products.
It’s also recommended for online retailers, in addition to retailers with store locations.
What product liability insurance covers
- Design defects: There’s something wrong with the product’s design.
- Manufacturing defects: Something went wrong during manufacturing.
- Marketing missteps: A mistake in marketing materials, such as improper labels.
- Insufficient warnings: The product doesn’t include sufficient warning/information about potential harm.
Product liability protects your business if a product harms a customer, even if you’re not at fault or it wasn’t your intention.
Here’s how it can help you:
A customer claims that a frozen pizza your business sold her gave her a serious case of food poisoning and a trip to the hospital, causing her to miss work for an extended period. The customer successfully sues you for bodily injury. Your product liability insurance would help cover the legal expenses and costs to recall the product.
What is not covered by product liability Insurance?
This type of insurance only covers third-party bodily injuries or third-party property damages caused by a product you sell or manufacture. Any other damages to a third-party, such as slip-and-fall injuries, would be covered under a separate general liability insurance policy.
How much product liability insurance do you need?
The amount of coverage you need will depend on things like the products you are selling and their associated risks.
Why choose Western?
We’ll get you product liability insurance that’s tailored to your business. It’s easy, fast, and customized. Get an online quote, text, email, or phone call. Choose what works for you.
FAQ's
What is Product Liability Insurance in Canada?
Product liability insurance protects businesses from legal and financial consequences if a product you make, sell, or distribute causes injury, illness, or property damage.
What coverage limits should I consider?
1 million to $5 million per claim. Higher limits may be required if you sell to large retailers, export, or manufacture high-risk goods.
If I import products, am I liable for them in Canada?
Yes. Under Canadian law, importers are treated as the manufacturer. You are legally liable for Defects, Injury or damage caused by the imported product even if it was made overseas. You must have proper product liability coverage and may also need supplier agreements and risk management controls.
Does product liability insurance cover online sales (e.g., Shopify, Amazon, Etsy)?
Yes, but you must, disclose where and how you sell products, ensure your policy covers international sales, if applicable, meet platform insurance requirements (e.g., Amazon requires $1M+ coverage for some sellers).
Can I get product liability insurance if I manufacture at home or in small batches?
Yes. Many insurers cover home-based businesses or small-batch makers (like soap, candles, cosmetics), especially if you sell locally or at markets.
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